A group of concerned students has raised money to help


Question: A group of concerned students has raised money to help hurricane victims. They plan to invest the money to provide monthly payments. The town will receive the first payment after a month and the payment will be $3000. Each month after that, the town will receive a payment that is 0.5% larger than the previous payment. This pattern will go on forever. Assume the interest rate is 12% EAR. What is the value of the gift immediately after the first payment is made?

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Finance Basics: A group of concerned students has raised money to help
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